Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Long-Term Treasury Bonda 6.68 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 Average 1950 to 2019 Average 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 Average Average Average Average Average 1990 to 1999 2000 to 2009 2010 Annual Return. 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return. 2015 Annual Return 2016 Annual Return 2017 Annual Return 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Stocks 12.78 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 -12.7 25.1 -1.2 1.2 8.4 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63 You have a portfolio with an asset allocation of 50 percent stocks, 40 percent long-term Treasury bonds, and 10 percent T-bills. these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. Note: Do not round intermediate calculations. Round "Standard deviation" answer to 2 decimal places and other answers to decimal place.
Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Long-Term Treasury Bonda 6.68 0.0 1.6 5.7 13.5 9.5 8.0 9.4 29.9 3.6 Average 1950 to 2019 Average 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 Average Average Average Average Average 1990 to 1999 2000 to 2009 2010 Annual Return. 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return. 2015 Annual Return 2016 Annual Return 2017 Annual Return 2018 Annual Return 2019 Annual Return 2010 to 2019 Average Stocks 12.78 20.9 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16.0 32.4 13.7 1.4 12.0 21.8 -4.4 31.5 14.2 -12.7 25.1 -1.2 1.2 8.4 -1.8 14.8 7.7 T-bills 4.2% 2.0 4.0 6.3 8.9 4.9 2.7 0.01 0.02 0.02 0.07 0.05 0.21 0.51 1.39 1.94 2.06 0.63 You have a portfolio with an asset allocation of 50 percent stocks, 40 percent long-term Treasury bonds, and 10 percent T-bills. these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year since. Then compute the average annual return and standard deviation of the portfolio. Note: Do not round intermediate calculations. Round "Standard deviation" answer to 2 decimal places and other answers to decimal place.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019
Long-Term
Treasury Bonda
6.68
0.0
1950 to 2019 Average
Average
Average
1950 to 1959
1960 to 1969
1970 to 1979
1980 to 1989
1990 to 1999
2000 to 2009
Average
Average
Average
Average
2010 Annual Return
2011 Annual Return
2012 Annual Return
2013 Annual Return
2014 Annual Return
2015 Annual Return
2016 Annual Return
2017 Annual Return
2018 Annual Return
2019 Annual Return.
2010 to 2019 Average
Stocks
12.78
20.9
8.7
7.5
18.2
19.0
0.9
15.1
2010
2011
2012
2013
2014
2015
Portfolio Return
%
%
%
%
2.1
16.0
32.4
13.7
1.4
12.0
21.8
-4.4
%
%
31.5
14.2
1.6
5.7
13.5
9.5
8.0
9.4
29.9
3.6
-12.7
25.1
-1.2
1.2
8.4
-1.8
14.8
7.7
T-bills
4.29
2.0
4.0
6.3
8.9
< Prev
4.9
2.7
You have a portfolio with an asset allocation of 50 percent stocks, 40 percent long-term Treasury bonds, and 10 percent T-bills. Use
these weights and the returns given in the above table to compute the return of the portfolio in the year 2010 and each year
since. Then compute the average annual return and standard deviation of the portfolio.
Note: Do not round intermediate calculations. Round "Standard deviation" answer to 2 decimal places and other answers to 1
decimal place.
0.01
0.02
0.02
0.07
0.05
0.21
0.51
1.39
1.94
2.06
0.63
2 of 5
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Transcribed Image Text:2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Average
Standard deviation
Portfolio Return
%
%
%
%
%
%
%
%
%
%
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